Page 16 - Presentation - TERM SHEET - Spark Venture Partners LLC
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SPECIAL FEATURES OF THE CONCEPTIONS OF BUSINESS IMPLEMENTATION
Special features regarding the capitalization concept:
As described in our previous statements, PARTY #1 intends to monetize its assets (Asset #1 & Asset #2). The TERM SHEET further elaborated on the monetization
and pointed out the specifics of the assets to be monetized.
One thing to consider here is that, despite the "Quality Analysis & Appraisal Reports" prepared for the valuation of assets, lenders proceed according to their own
valuation criteria and use them to determine the loan-to-value ratio for the assets provided. In our subsequent explanations, we have described the key factors for
calculating/determining the loan-to-value ratio.
Taking into account that the assets will be subject to a corresponding loan-to-value deduction by the lenders when determining the underlying loan-to-value ratio,
and that additional costs will be deducted from the capital amounts generated from the monetization, such as insurance premiums in favor of the assets, risk
discounts and other costs, etc., and in addition, the costs for capital servicing (interest and repayment) must be taken into account, PARTY # 2, in cooperation with
the decision-makers of the BLACK MOUNTAIN GLOBAL GROUP, has developed a monetization and capitalization concept in its entirety in order to balance or
optimize the percentage loan-to-value deduction of the assets and to additionally generate the further deducted costs and ongoing costs (capital servicing).